- Dogecoin investors expected government support after Musk took an active role, but D.O.G.E. had nothing to do with crypto and aimed at making federal operations more efficient
- $DOGE peaked at $0.37 before crashing 55.54% in two months, significantly underperforming compared to Shiba Inu, which lost a smaller 38.87% in the same period
- Musk admitted he chose the name based on internet suggestions but dismissed any Dogecoin integration, focusing instead on improving government efficiency by 15%
Heading into the Donald Trump presidency in 2025, expectations were high among Dogecoin investors. Those were not unfounded, after all, the memecoin’s biggest ambassador — multi-billionaire Elon Musk — was set to have an active role in the new administration, in a new government department cleverly named after dogecoin, D.O.G.E.
An acronym for Department of Government Efficiency, D.O.G.E. was created to track and subdue the United States federal debt by cutting funds to government branches deemed “inefficient”, enforcing stricter budgetary guidelines, eliminating unnecessary subsidies, and consolidating underperforming agencies.
According to the DOGE tracker, the unofficial department has already saved $140 in tax dollars, around $870.00 per U.S. taxpayer.
However, as time went on the fact that Elon Musk had no intention of somehow using or endorsing Dogecoin through D.O.G.E. became increasingly clear, much to the disappointment of Dogecoin enthusiasts.
When asked about it at the most recent Wisconsin Town Hall meeting, Musk sidestepped the topic. According to him, his initial intention was to name the department only “Department of Efficiency”, but was later convinced by internet comments that “D.O.G.E.” would be funnier.
Later, Musk clarified there were “no plans for the government to use Dogecoin.” Instead, the focus was on making the government “15% more efficient.”
Dogecoin Lost Half of Its Value Since D.O.G.E. Went Live
The world’s largest memecoin has plummeted by over half of its initial value since Elon Musk’s Department of Government Efficiency started its operations on January 20, 2025.
Back then, $DOGE traded at around $0.37, still boosting an incredible 166% rally in the last 2 months. However, the Dogecoin market suffered a significant rebound as bears constantly drove the price of the asset downwards.
Fast forward to around 2 months — Dogecoin is currently trading at $0.16, down 55.54% since D.O.G.E. first started.
While this bearish movement is far from being exclusive to Dogecoin, the largest memecoin has been performing worse than its main competitor Shiba Inu since January 20.
SHIB has lost “only” 38.87% since January 20, showing comparatively stronger resilience in the memecoin market. While both assets have faced heavy selling pressure, SHIB’s losses have been notably less severe.
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